MySQL sold for $ 1 Billion !!
Yes that is true. MySQL AB the developer of opensource database system MySQL has been sold to Sun for close to $ 1 Billion. Here is the posting on Sun’s website announcing the acquisition.
Most importantly this deal proves that open source software development can be a viable business model.
MySQL was always a great database. However continued support was a major concern for any corporation considering installation of MySQL. With SUN’s might behind MySQL that concern shall be gone. Support revenue forms a large part of the revenue for many product companies and IMHO SUN must have given a lot of weight to the expected support revenue in coming up with this billion dollar valuation.
The deal looks to be quite complementray. Sun is in the enterprise and has a substantial Web presence, while MySQL has a substantial Web presence and is entering the enterprise. Hence there is a possibility of a substantial cross-sell for both products.
The only downside can be that MySQL stops being a truely opensource software and starts to focus too much on the earnings potential. Hope that better sense prevails at SUN.
SUN has been involved with the development with the development of rival open source database PostgreSQL. It will be interesting to note what will be SUN’s strategy going forward.
Seems like it is time for Larry to start concentrating on his core database business.
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